Goldman Sachs Turns Bullish on European Banks

Goldman Sachs Friday upgraded its targets for the Stoxx 600 index, the Euro Stoxx 50 and the FTSE 100 and took a more bullish stance on European banks, citing the benefits of the European Central Bank’s recent long-term refinancing operations.

In an equity strategy note, the brokerage raised its three- and six-month targets for the Stoxx 600 index to 270 and 275 from 250 and 265, respectively. “While uncertainty remains high, our central case is no longer for any near-term weakness to be sustained on even a three-month horizon,” said Goldman. Its 12-month target for the index is unchanged at 290.

Goldman Sachs upgraded its three-month target for the Euro Stoxx 50 to 2550 from 2350 and its six-month target to 2650 from 2575, while keeping the 12-month target at 2800.

Three- and six-month targets for the FTSE 100 were also upgraded, to 6000 and 6200 from 5600 and 6000, respectively. Goldman has a 12-month FTSE 100 target of 6400.